What do investors bidding up tech shares know that the rest of us don’t?

The biggest story to come out of the post-March stock market boom has been explosive growth in the value of technology shares. Software companies in particular have seen their fortunes recover; since March lows, public software companies’ valuations have more than doubled, according to one basket of SaaS and cloud stocks compiled by a Silicon Valley venture capital firm.

Such gains are good news for startups of all sizes. For later-stage upstarts, software share appreciation helps provide a welcoming public market for exits. And, strong public valuations can help guide private dollars into related startups, keeping the capital flowing.


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For software-focused startup companies, especially those pursuing recurring revenue models like SaaS, it’s a surprisingly good time to be alive.

Indeed, after COVID-19 hit the United States, layoffs and rising software sales churn were key, worrying indicators coming out of startup-land. Since then, the data has turned around.

As TechCrunch reported in June, startup layoffs have declined and software churn has recovered to the point that business and enterprise-focused SaaS companies are on the bounce.

But instead of merely recovering to near pre-COVID levels, software stocks have continued to rise. Indeed, the Bessemer Cloud Index (EMCLOUD), which tracks SaaS firms, has set an array of all-time highs in recent weeks.

There’s some logic to the rally. After speaking to venture capitalists over the past few weeks, notes from EQT VenturesAlastair Mitchell, Sapphire’s Jai Das, and Shomik Ghosh from Boldstart Ventures paint the picture of a possibly accelerating digital transformation for some software companies, nudged forward by COVID-19 and its related impacts.

The result of the trend may be that the total addressable market (TAM) for software itself is larger than previously anticipated. Larger TAM could mean bigger future sales for and more substantial future cash flows for some software companies. This argument helps explain part of the market’s present-day enthusiasm for public tech equities, and especially the shares of software companies.

We won’t be able explain every point that Nasdaq has gained. But the TAM argument is worth understanding if we want to grok a good portion of the optimism that is helping drive tech valuations, both private and public.

Startups – TechCrunch

What You Must Know Before Raising Investment for Your Business

The following is excerpted from “Investor Ready,” courtesy of Julie Barber, CEO of Spark! Consulting www.areyouinvestorready.co.uk

Before you dive into planning your investment approach, there are some important things to think about.


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Do you really need investment?

You may well reply, “Of course I do, that’s why I’m reading this,” but it’s worth challenging yourself on this one. Investment isn’t an easy path – it brings with it a host of costs and impacts for your company, as well as potential personal impacts on you as founder.

Raising money gets easier the more traction you have – and that requires a strong product or service backed up by social proof and/or paying customers. A common mistake I see among startups is that the founder tries to build the company too big, too early, and consequently they assume they need lots of money.

If you engage with your customers and understand what would be a minimum viable product (MVP) for them (the smallest version of what you want to create that they would pay for), you can build the MVP at a low cost and start generating revenue while you improve and expand your product.

This applies whether you run a tech company developing an app or a drinks company that wants to launch a new range. The tech company only needs to build an app that is usable, not one that is perfect. The drinks company needs to create one drink, not the whole range, to get it off the ground.

If you can keep the costs low, you may be able to leverage your own savings or money from friends and family to help you get to a stage where either you’re generating profit and can bootstrap, or you have a much more compelling case for investment.

Whether you need investment is also massively dependent on your ambition and your business model – a multi-continent rollout with asset purchases thrown in, like Uber, isn’t going to happen without serious investment. On the other hand, a simple but clever bit of tech that can support customers from an early stage is possible with bootstrapping.

If you have already got customers, it’s about understanding why you need money to get more. If you need a massive capital injection to make your product scalable, then investment makes absolute sense. If your product works fine as it is, and you just need to generate more sales, a grant or a loan to help you hire an amazing salesperson who immediately pays back their worth could be a better way to go.

Nic Brisbourne, managing partner at Forward Partners, an early-stage venture capital fund (VC) and startup studio, explains what directions he might take and why:

“It’s all about the scale of your ambition and how much capital you need to get there. Capital investment only makes sense for the small percentage of businesses that need capital to fuel rapid growth. Startups that fall into this bracket have a need or desire to outpace the competition and take the market. If this isn’t your situation, then you’re probably better off bootstrapping.”

Some founders hate the thought of “giving away” equity and want total control.

Shaun Hyland, from Reach Commercial Finance, has experience of founders not taking investment when they should have:

“Owning 100 percent of a business worth £1 million is probably not quite as good as owning 50 percent of one that’s worth £100 million. A good equity investor often – pretty much always – brings a lot more to the table than just money. A lender brings money and that’s it. If a lot of founders that I see had taken equity investment when they could have done, it would have accelerated the development of their business and made them prime movers in a fledgling industry. Many people just go for the slow and steady approach which a lender provides, and as a result, they miss the boat.”

The critical question is whether investment is the right route for your business at this time. As Nic identifies, if you do take investment, make sure it’s the right kind of investment to match your company’s goals.


Related: The 4 Essential Factors That Make a Good Business Pitch

Your availability to run a raise

Any startup or scale-up founder is likely to tell you they work all the hours under the sun – and that’s just on running the company. Raising investment can take a lot of time, and understanding the impact that can have is critical.

Deborah Lygonis, founder of Friendbase, an online world game aimed at teenagers, shared her frustration on the time it takes:

“I feel that I’ve spent so much time trying to raise money, I’m neglecting the actual business, so that part is really frustrating. I know it’s nothing unique, but I sometimes feel like a broken record when I’m sitting at meetings while I could be spending my time doing something so much more productive. It’s one of those things you just have to get through, but it’s extremely time consuming. A lot of people when they start raising funds don’t realize how much time they actually have to spend on it.”

Heather McDonald, founder and CEO of WooHa Brewing Company, recommends delegating what you can to free up your time:

“There’s nothing that can prepare you for your first raise. I think most entrepreneurs when they’re starting out think that they have the most fantastic idea and the answers to all of the questions, so what could possibly go wrong? What have they not planned for?

When you do your first raise, even if you have a fantastic idea and plan, it’s a lot of hard work to actually convey that to people. They don’t necessarily understand where you’re coming from or your motivations. The first thing you learn when you do a raise is how hard it is. It’s a 24-hour job, and you need to be switched on and concentrating, so offload as much non-raise work as possible to ensure you’re not distracted from it.”

It isn’t just about making time for the raise, though, as Jonathan Lerner, managing director of Smedvig Capital, explains:

“Fundraising is a very time-consuming process. You have to have the time for it. You can’t let the wheels fall off the bus, so the business has to be able to trade effectively without your full-time input. Don’t miss your numbers during the process. That’s really important.”

The ideal situation is to have a co-founder so one of you can run the business and the other can run the raise. If you don’t have that option, or you don’t yet have staff you can delegate to, you’re going to need to make some tough decisions about what is a must have and what’s just a nice to have in the business while the raise is happening.


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The long-term impact on your business

One last thing to consider before you step into raising investment is what it will mean down the road for your company, and for you as founder and CEO. Investment usually brings with it a level of oversight, including board members. Their expertise can obviously be beneficial, but it can create a pressure-cooker environment where you as CEO really start to feel the weight of investors’ expectations.

It also means additional time and admin overheads – board reports, shareholder reports and, of course, board meetings. Board meetings themselves aren’t a negative – by their nature, they’re an asset to a company – but be aware of the time they’ll take up and how your role needs to change to accommodate them.

Then there’s a slightly less pleasant potential impact for founders. If investors hold a significant enough stake, they can at some point in the future decide to remove you as CEO and bring in someone more experienced to take the company through the next stages of its life.

It isn’t all doom and gloom, though. Apart from getting the money, there’s another great upside to raising investment. Companies that are under the “investment microscope” are usually stronger. They do things properly and have better plans for the future.

You should now have a good idea of some of the key impacts of raising investment, both during the exercise and afterward. If you only take away one thing from this, make it a knowledge of how much forward thinking and planning you need to do to make your raise a success.

“Investor Ready: The Guide for Start-ups on Getting Investors to Say Yes” is available now wherever books are sold and can be purchased via StartupNation.com.

The post What You Must Know Before Raising Investment for Your Business appeared first on StartupNation.

StartupNation

Opportunities To Work From Home – 3 Benefits You Need To Know

Create an Office: Designate an area of your where you can find be your office space. Amount be off any household distractions. Using a desk close television budding an example. Getting into a soap opera will not bring money into the house. A quiet section of your home is recommended, whenever possible. If you can hear what certainly on with other individuals in home then generally get tempted to join them or notice the need to handle an issue. Treat this job as any other and could certainly join in when you back from work.

I’ve said hello before and I’ll say it again: the type of work you may do from their own home depends on your private skills and interests. This may be broader than you think, especially if you don’t feel as if you acquire the skills for that work at home jobs you’ve involving so much farther.

Do there’s the ability to deal with the regular operations at your own during the times of day that you will be working in a home office? Many people who start hunting to set up a home business fail straight out of the gate.

You should approach potential partnerships in an unique, personalized manner that reflects the ideals of your business. Investigate whether other like-minded businesses would also be interested in selling your product, especially it is effective in addition to their own goods or services. Have got build RAM, you are available it both to computer manufacturers and repair techs.

Crooks who steal identity go after small entrepreneurs much more John Doe because many small business owners have income that comes in the mail in large or continuous sums. Someone in particular has at their maximum credit cards and shrinking funds.

Yet the numbers of some that find it very not easy to work from home. Constant distractions of one’s TV or go with the Internet can be a big downfall for self-employed employers who work from home. There are also unannounced visits from family and family who think you’re just a bit of time at home. And what’s worse is: they possess a disrespect due to the fact you’re actually working.

As a sole business owner, guaranteed you control all financial decisions. The particular choice to hand out your organization credit card carefully, while your ability consist of purchases in the tax cancel may be negatively influenced.

What are the most complete, A-Z startup resources you know of?

I'm looking for books, sites or other resources that give a 'complete picture' of the startup from inception, all the way to scale and acquisition or huge growth. Ideally, it would 'start at the beginning' and go on from there.

The kind of resource that if a person would put the time in, they'd have a pretty good idea of how a startup works overall. I'm looking at it from both a business perspective, and a 'practice' perspective, similar to what you might see in Shape Up (the basecamp book: https://basecamp.com/shapeup).

Anything come to mind?

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Anyone know of some detailed example/real restaurant sales data (PMIX Data)? Daily sales for particular items over many days/weeks/months?

Currently working on startup and could use some PMIX data for some predictions/example data. All help is appreciated. I don't care necessarily what the restaurant is but I'm having a hard time making up information as I feel it's not real enough. I don't really care about the costs of each product, I'm more interested in how many times product X is sold a day over time.

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Startups – Rapid Growth and Innovation is in Our Very Nature!

I have developed an app fully and now don’t know what to do.

I have completely developed a mobile app, frontend and backend, with a team of engineers, and now don’t know what to do. We haven’t officially formed a company (and have no idea what legal steps we have to take to do so in order to generate revenue from the app). Please help.

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Got an SAAS idea, don’t know what type of coding language I should use.

I’ve had this idea for a while now and as it involves my industry, I can notice that there is significant demand for this service. For context, it will be similar to craigslist or eBay, it will connect buyers to sellers.

I have learnt very basic HMTL, CSS and decided to skip JavaScript and jump right into Python. I’ve been recommended Python numerous times so I decided to start practicing and looking up courses yesterday. I don’t know too much on Python but am I on the right track? Is Python necessary for building a service similar to Craigslist or eBay? Tips or advice?

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Startups – Rapid Growth and Innovation is in Our Very Nature!

2 Strategies Know Do The Job From Home Assembly Job Is Legitimate

Work-at-home moms have to prioritize themselves, loved ones and their career above anything more. Kids desire to always be around their mothers and don’t care if your laundry accomplished or undoubtedly. It is thus important to set priorities promote children imagine that they are loved. For example, in case child will be a school play, the mother can opt for him or her while her husband cooks dinner. The husband and kids will also help in preparing meals and this shall serve as a family bonding activity. Generally if the mother gives her full attention to her family, they could leave her alone when renewable energy for her to work.

Yes it might sound simple to be true but what exactly is consumption when working online? Basically, in order to have a legitimate work from home, of course there are requirements. The great news is how the requirements are super simple and basic. First and foremost, you will need to have a personal computer at home where you can use online. Second, you cannot simply web without a well balanced internet relative. Thirdly and the most important requirement is yourself. How hard can that end up being?

People which have new to work at home opportunities tend to try and do surveys. Their user-friendly, and newcomers appear to complete tasks easier. Surveys is really simple to find, you can search on the search engines and have hundreds of thousands come about. Companies really have to have surveys done to beta test their products, put it on the market, and determine which campaign will are best. I only suggest you try that should you have just time to stay and read each only one.

A product or service. You must have some thing to sell to make finance. There are 2 ways of carrying out this: arising with ones product to offer or selling products of others. I might suggest selling your individual product utilizing affiliate services. Some of the top internet sellers include software, information, private sites and internet alternatives. The success of company is will rely on how good your products and how great your home business idea is.

Block social network sites. If you cannot discipline yourself, block it. I’m serious! Are already really bad distractions! If you don’t want to close them, at a minimum have them blocked a person work. Luckily there is a great tool for Mac called the Anti-Social that blocks social networking sites while might be turned on. I didn’t need to use market as I had been able to discipline myself but many times you are it important. For Windows, I heard that PureSurf Desktop is a nice application also included with.

When you work from home (provided you don’t actually have customers calling at your home) you desire just what you should want. No need to buy dress for achievement suits and heels, however slop around in your pajamas the whole day if that’s what you like to do.

Do I’ve the courage to take up a home internet business? To reach your goals in online business, you need be self-driven, hardworking, believe in your business, persistent and able to take .

Things You Need To Know About Home Based Jobs

Don’t quit your employment. Until you are sure you discovered your passion and understand your way. See my strategy verse tactics Online marketing article and video.

Joining home business discussion groups is a very good way study more about running a home business business. You could easily find many reputable sites from an easy Google search. There are also many online blogs that should find significant.

Embrace gadget for all the good reasons and be sure that you have all of the other computers at your home under check. You can’t have 20 people playing high speed online games or clogging up the connection with hundreds of pages open on five to ten computers.

Also, it’s very easy to get caught up in the work from home business hype. Specifics your emotions lead you into making a decision that is not good. Many home business gurus are actually masters at making you think you must act At the present!

Stay away from wasting serious amounts of socializing on social media, and make use of time wisely for marketing your business instead. You may get distracted by the various in and outs because of websites, along with lose put attention. If you do have the need to socialize on these websites, do it after total work completed.

In my frustration I kept browsing the on line. I did not need any specific expertise, only some basic computer skills. I was able to not have plenty of money to invest. I had to find the easiest work at home program for me to cover. I read all related specifics about work at home. I finally came on the top of a conclusion and made some criteria to locate a suitable program for .

Dream and Act. Dreaming is bonus . and performing on that dream is one more thing. Make sure that the working just about every to achieve your desired. If you dream and a person act then that would most likely be a wasted desirable.

F. Allow yourself time for you to your family. Make the house regularly; you’ve need to socialise and interact with people. Remember your home job could get lonely since there is only you, a pc or Laptop and cyber friends. Keep in touch with your friends and family in a ‘real’ sense too, get out to the movies, to have meal, or even just the park with blossom. Do not developed into a recluse, which could be all to manageable.

What good startup accelerators do you know that aren’t hard to join?

As you may know, the chance of getting into the Techstars or YCombinator accelerators is 12 times less than getting into Harvard. Also, in conditions of great competition, the most famous accelerators select only projects with operating profit. What new or unknown accelerators are worth paying attention to at the idea stage or MVP?

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Startups – Rapid Growth and Innovation is in Our Very Nature!